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Reader Question: Is it possible to fast-track French paperwork?

Whether it's waiting for an appointment or anxiously tracking the progress of your application, most foreigners in France have wondered at some point whether it is possible to fast-track their French paperwork.

Published: 25 August 2022 15:57 CEST
Updated: 28 August 2022 09:05 CEST

Reader Question: Is it possible to fast-track French paperwork?

As a foreigner in Austria, you'll generally need your passport and residence permit for valid ID. Photo by Global Residence Index on Unsplash

You might have heard of France’s ‘fast-track citizenship’ for over 1,000 foreign-born frontline workers during the height of the pandemic or perhaps stories of other EU countries that offer faster and simpler residency in exchange for investment.

You might even have seen companies offering to ‘speed up’ paperwork for you.

Unfortunately we’re here to tell you that there is no secret ‘fast lane’ where everything is dealt with speedily, even if you were willing to pay for it.

There are, however, some things that you can do to make sure your paperwork is dealt with as fast as possible.

Be sure you are applying in the correct category

One sure way to encounter delays is to apply for the wrong thing, so it’s really worth taking the time to do your research in advance into the different types of residency cards and visas.

If you apply for a visa or residency card type that you’re not eligible for, it’s likely that your application will simply be rejected and you will have to start all over again.

We have a guide to the different visa types HERE.

Another way to save yourself an annual admin task is to go straight onto a multi-year visa, such as the ‘passeport talent‘ which lasts for four years.

You might think that this is only available to high earners, but there are several other situations in which you might qualify. For instance, researchers, artists and those with ‘international reputation’ can qualify too.

Have a complete dossier

This might seem obvious, but a common hang-up with French administrative processes is simply not having all of the correct documents – all residency and visa applications have a list of the required documents and you should make sure that you have everything that is needed ahead of either submitting your application or heading in for your appointment.

The documents should be up-to-date (as recent as possible – usually best to aim for within the last month or two, though your specific procedure might specify a timeline). Each document should have the same full name and the same address listed.

Consistency is key – for example, if you are applying for a new titre de séjour and you bring in a copy of your proof of health insurance (Attestation de droits – assurance maladie), but the address listed is out of date, you could risk being turned away or told to come back.

Pay attention to the details too – if you need new identity card photos, the ones you took a year ago will likely be out of date (even if your appearance has not changed).

Always bring copies of your passport, current visa or residency permit, as well as any required paperwork. Most of the time, you’ll be asked to show proof of your current address – it does not hurt to have multiple ways of demonstrating this (eg a phone bill and an electricity bill).

Bringing the wrong documents, those with mismatched information, or missing key forms will prolong the process, as you will need to make a new appointment and start the process over again. Having your documents ready to go in an organised fashion can save you lots of time!

Go in person, if possible.

In France, it is often faster to do administrative processes in person. If you are worried about your French, consider asking a friend to come along.

If an in-person option is not available, then a phone call is your next best bet.

France is gradually putting more procedures online, but the old-fashioned way of speaking to a real person is almost always most efficient, especially if you have situation-specific questions. Surprisingly, your local tax office might be one of the most welcoming places to pop in and ask a question.

Seek expert help if your situation is complex or irregular.

If your situation is out of the ordinary, you might want to consider legal or professional assistance to be sure you are following the correct path.

However, keep in mind that even with expert assistance, you will still need to file the documents yourself at the end of the day. A lawyer can help you be sure that your dossier is correctly filled out and prepared, but they cannot make French bureaucracy work faster, unfortunately.

Citizenship

We said there is no fast-track, but French citizenship is the exception (sort of).

If you’re applying through residency, French citizenship can normally be requested after five years, but the ‘period of residency’ requirement can be reduced to two years for those who successfully completed two years of study in a French institution of higher learning or if you have rendered “important services to France” (as was the case for the essential workers listed above).

If you marry a French citizen, you can apply for citizenship through marriage after four years of marriage.

And if you join the French Foreign Legion and are wounded on active service you can apply for citizenship before the minimum five year period – although this seems a slightly extreme way to avoid waiting times.

Once you have applied, there is unfortunately no way to fast-track the process, and the average time between submitting your application and being naturalised is 18 months to two years.

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But ultimately, it might be better to accept that French admin tasks usually take a long time – and processing times can vary quite dramatically between different areas.

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Are Australian pensions taxed in France?

The situation for Australians can be particularly confusing, largely due to the fact that Australia and France do not have a bilateral social security agreement (though there is an income tax treaty).

Before going any further, it is worth noting that this article is meant to give an overview of the pensions situation for those with Australian pensions in France. It does not replace professional financial advice, and Australians looking to retire in France should seek out expert financial assistance before making any decisions about their pension.

The first step is to determine whether or not you are a tax resident in France (you can look through our guide). All tax residents must fill out a yearly tax declaration, and they must report all global income, even if it is not subject to tax in France.

Where is my pension taxed?

As for pensions, let’s start off with the basics – if you receive a civil service pension from the government of Australia – meaning you were a federal or state public worker, then that pension is only taxed in Australia and it will not be taxable in France, though you will have to declare it along with all global income, although this could count towards your household income which can push you into a higher tax bracket.

As for all other pensions – these are considered taxable in France.

If you have a pension from another country besides Australia, different rules may apply based on that country’s bilateral tax treaty with France. Here is the situation for British, American, and Canadian pensions, and here is an overview of the system.

Age pension

There is a big catch for Australians – the lack of a social security agreement means that Australians living in France may not be able to claim their Age Pension (assuming they qualify based on income constraints).

While you can be an Australian living in Austria, Belgium, Chile, Croatia, the Czech Republic, Spain or Estonia, among others, and still claim your Age Pension, this is not the case in France.

What’s crucial here is when you move – if you start receiving your old-age pension and then you move to France, then you may be able to continue claiming the pension. If, however, you move to France before you reach pension age, then you will not be able to claim it unless you move back.

A spokesperson for the Australian government told The Local in a previous interview: “To be eligible for Age Pension, a person must generally be an Australian resident and be in Australia at the time the claim is lodged, or in a country with which there is an International Social Security Agreement in place.”

There is no such agreement with France. And, despite the efforts of some of the thousands of Australians living in France to get politicians in both countries to act, there appears to be little urgency to change the situation, which means it could be some time yet before we are able to give you any good news on the pension front.

There are groups pushing for a social security agreement, such as the Facebook group ‘Australian Pensions in France’, which can also be a helpful place to connect with other Australians navigating tax complexities between the two countries.

What about superannuation plans?

The next complex area is the ‘superannuation’. While withdrawals from a ‘super’ can be accessed after becoming a resident in France, there are tax implications to be aware of.

The Local spoke with Martine Joly, chartered accountant and tax agent from Bilateral Solutions, who has experience working in both the Australian and French tax systems.

Joly explained that the challenge is that “the two systems are totally opposite. In Australia, pensions are done by capitalisation, with your employer paying into the superannuation.”

In Australia, the contributions were taxed when being deposited, so they are meant to be tax-free upon distribution.

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However, France does not recognise this, so ‘super’ withdrawals are subject to tax here, even though in theory they have already been taxed in Australia.

To make matters more complicated, there are several different ways superannuation plans can be organised, but for the most part French fiscal authorities treat them as trusts.

This means that you may have additional reporting requirements each year, in addition to your annual French tax declaration, such as the “FORMULAIRE N°2181-TRUST2” which asks for the market value, as well as any accrued income, of the trust as of January 1st of that year.

If you are required to do this, then you will also have to name other people listed in the trust – whether they are ‘moral’ or ‘physical’ people. You will be required to give extensive information, including their dates of birth and addresses.

On top of that, you would also have to fill out an additional “event” declaration if a trust is created, modified or terminated. This must be done within one month of the event. This tax form is also available on the government tax site: FORMULAIRE N°2181-TRUST1.

How much can I expect to pay?

You will begin to be taxed when you start withdrawing from your super, and the way you are taxed will depend on whether you take payments in the form of an ‘income stream’ (periodic payments) or as a lump sum.

If you take your super as an income stream, even though it is meant to be tax-free in Australia, you will still owe tax in France once it begins to be distributed. You would be charged at the progressive marginal (barème) rate for income tax, going all the way up to 45 percent (for the highest earners only).

If you try to avoid paying, be aware that “Australia will inform France”, as Joly explained.

“They communicate well and it will not be lost. So the French will realise if you have not paid any tax, because it is fully taxable in France. You have to declare this pension income,” she said.

As for lump sum payments, whether or not you will owe tax in France depends on when you placed the super into your bank account.

“If you convert the super into a bank account prior to leaving Australia and becoming a tax resident in France, then this is not an income, it is a saving,” Joly said.

As such, you would not owe income tax on it, but you would still need to declare the foreign bank account to French tax authorities.

If you take your lump sum super after moving to France and becoming a tax resident, then you would owe tax here upon distribution.

Beware that lump sums are complex and you should get financial advice before making this decision. Technically, French tax authorities may allow a return of once off pension capital to be taxed at a flat rate of 7.5 percent.

But in reality, anyone seeking to do this would need the express, written confirmation from French tax authorities that this rate will be applied. Similarly, you should be aware that this likely will not be possible if you have already begun drawing from your ‘super’, as the flat rate is often only available if the full amount is taken at once. Again, individual professional advice is highly recommended.

You can also find more information at the French tax website Impots.Gouv.Fr.

Joly pointed out a few other things Australians in France should be aware of – including the possibility you may owe the IFI (Impôt sur la fortune, or wealth tax) which considers whether you have property valued at €1.3 million or above.

“Due to high real estate prices in Australia, people just owning a small apartment in Sydney may not realise they would owe tax on this in France later on,” she said.

You should also keep in mind that Australia’s tax year runs on a different calendar year. France considers the period from January 1st to December 31st, while Australia looks at July 1st to June 30th.

This may make a difference when considering your tax residency.

What about social charges?

Deductions in France come in two types – impôts (taxes) and prélèvements sociaux (social charges).

Australians have reported receiving social charges, in addition to taxes, for their superannuation income. That being said, there are several exemptions to social charges.

For example, if you are not working and your spouse is a recipient of an EU/EEA/UK pension (with an S1 form), then both of you would be exempt from paying the CSM health charge.

As the situation for Australians can be more complicated than nationals of other countries, it is highly recommended to seek expert assistance, particularly from someone who has qualifications in both countries and understands the tax treaty.

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